The Growth of Logistics Across the Automobile Industry

The Growth of Logistics Across the Automobile Industry

When it comes to logistics, companies the world over are looking to both current and future technologies to either import or export products. For as long as the logistics industry has existed, this has occurred.

In terms of American history, ships gave way to steamboats, which gave way to the Pony Express, which gave way to trains, planes, and automobiles.

Currently, there is a perception that autonomous vehicles will change the automobile industry in the near future. Companies like DHL have already jumped on board. It is not just automation, but all technology.

While it is not likely that automation will completely replace human workers, such advances will require workers to learn a new, more applicable skillset. Workers may need to be provided with classes to become technicians, or operators of autonomous vehicles. Even if a car can drive itself, insurance costs and potential liability may force commercial companies to employ drivers as a “backup.”

Aside from shipping the vehicles, as any good logistics company will do, it is possible that the automobile industry will actually benefit from technological advancements like autonomous navigation systems, and the like.

As new technological features become less expensive and more integrated in vehicles, in all price ranges, only automobile companies that are perceived to be advanced in some way will profit. And that applies to the majority, if not all, American automobile companies.

Automobile Stereotypes

German cars are thought to be safe, yet expensive. Japanese cars are thought to be technologically advanced and safe. American cars are thought to be reliable muscle cars. While stereotypes exist, and not all vehicle manufacturers exist in such a mold, stereotypes help drive business.

The bottom line is this. Automobile companies, and automobile logistics companies, that are thought to be trustworthy and highly-valued, for whatever reason, will be able to survive and thrive, regardless of the changes that occur in the logistics industry.

Consider the rate of US auto sales from 1990 to 2016. While sales were highest in the 1990s, dipping slightly but remaining steadfast until around the time of the 2008 financial crisis, auto sales have increased overall since then.

The Future of American Auto Logistics

The future looks bright, if for no other reason than the existence of Tesla. Tesla has revolutionized the auto industry, and the rest of the American auto industry will benefit from that.

First, Tesla vehicles will not be able to outsell the competition until the range limits on its vehicles are improved. This provides American auto companies with time to create better vehicles and loyal customer bases.

Second, the most difficult thing to do is to design something that has not existed before. As technologically advanced as Tesla vehicles are right now, they will only become more technologically advanced in the future. Features that are popular with Tesla owners will soon be seen in competitors’ cars as they become more mainstream.

Third, one of the major issues with regards to Tesla is its changing stations. Gas and diesel stations are simply more efficient. Cars owners will not want to wait for a charge, and that may be the determining factor when purchasing a car.

As a result, even with a technological superiority, Tesla may find itself never gaining majority market share in the American automobile industry. Instead, Tesla is providing its competitors with all the advantages of its existence, but with none of the disadvantages of having to directly compete.

Next Steps

First, to be a successful Automobile company, you need to understand that technology is the future. However, technology correctly implemented is even better. If you can provide your customer base with what it wants, as well as keep up-to-date on the latest technological advances in the industry, your company will be able to ride any period of financial uncertainty or logistical shift, all thanks to a technologically-concentrated growth of logistics.

After college, he started his career in the auto transport industry from the bottom up and has done virtually every job there is to do at A-1 Auto Transport, including but not limited to: Truck Driver, Dispatch, Sales, PR, Bookkeeping, Transport Planner, Transport Manager, International Transport Manager, Brokering, Customer Service, and Marketing. Working with his mentor Tony Taylor, Joe Webster has learned the ins and outs of this industry which is largely misunderstood.

With over 30 years experience in the industry, we've been helping people ship their vehicles, motorcycles, RV's, heavy equipment, household goods and more across the country or overseas without a hitch. Ask us anything.